Dear Client:
We reported earlier this week on Nielsen numbers the four weeks to 9/5 (Labor Day Saturday) that showed craft volume up only around 5%. That’s per all outlet data that includes food, drug, convenience, Walmart, club and dollar stores.
Well, what a difference a day makes (besides perhaps a slightly different channel universe): IRI multi-outlet and convenience numbers to 9/6 (Labor Day Sunday) came out today and have craft up 20% in volume (and 25% in dollars). (Note: our specific Nielsen numbers may not include Not Your Father’s Root Beer in their craft definition, whereas our IRI data currently does [though that changes next month, when it will go under FMB]. This could help account for the discrepancy between IRI and Nielsen numbers. Besides that, IRI does not include Leinenkugel’s, Blue Moon and Shock Top in their craft definition, and we believe Nielsen does.)
BRAND TRENDS. (All data dollar sales trends unless otherwise noted.) It’s hard to overstate: Not Your Father’s Root Beer gained some serious share the 4- and 13- weeks to 9/6 in IRI’s multi-outlet and convenience universe. It was up 5.37 to 5.37 dollar share of craft for the latest four-week period, at $13.5 million in dollar sales, second only in this period/channel to Sam Adams seasonal (5.70) in dollar share of craft for the period. For the 13-week period, NYFRB was at 4.22 dollar share of craft, again, of course, with no comp. (Pabst also shared their own Nielsen multioutlet total U.S. xAOC+ convenience and exchanges data for an earlier period, the four weeks to 8/15. Per this data/period, the 6-pack NYFRB bottle is reportedly the number one craft SKU in the U.S. And Small Town is the number three craft brand in U.S. with only one SKU. It’s also twice the average beer price.)
Other standout share gainers include — of course — Lagunitas, whose two top 30 craft brands, IPA (number six) and Sumpin’ Sumpin’ (number 15), are gaining double digits in dollars and share. IPA is up 41% in dollars and a quarter in dollar share of craft for the four week period, and trending slightly higher for the 13 weeks. Sumpin’ Sumpin’ is growing too: up 55% in dollars and .15 share of craft, with similar trends for 13 weeks.
And we’d be remiss not to mention Wisconsin-based New Glarus’s continued gains in only one state of distribution. New Glarus products are up 34% YTD, and a few points higher for the most recent period, having gained around 0.10+ dollar share of craft.
But at the top (see next story), flagship craft continues to struggle, seemingly even more as the year wears on. Sierra Pale is up high-single digits YTD but slowed to mid-single in the more recent time periods. New Belgium Fat Tire has gone from just barely down YTD to mid-single digit declines.
SAM DYNAMICS. Sam Seasonal and Lager declines have accelerated from down around 5% YTD to slightly worse in recent periods: Seasonal was down 11% in dollars the four weeks to 9/6, and almost down 10% the 13-week period. Their Variety Pack is down a bit more than 7% YTD and for the 13 weeks to 9/6, and about double that for the four weeks. Even Rebel IPA, still up in share and 24% in dollars YTD, dipped into negative territory for the four-week period, though it’s up almost 3% for the 13 weeks. Their top brand in MULC, Angry Orchard Crisp Apple, has slowed from 25% dollar growth YTD to 5% the latest four weeks, although it’s up low-double digits for the 13-week period.
Coney Island should be a bright spot for them when it starts showing up more in data. Indeed, Boston shared with us some latest trends for the brand in IRI: After a slow start, they’re gaining, trending with a top 5 craft beer (Coney Island Hard Root Beer) the last four weeks and a top 10 brand family (Coney Island) in the same period.
NIELSEN: BIG CRAFT SEASONALS, VARIETY PACKS CONTRIBUTING TO RECENT CRAFT SOFTNESS
We asked Nielsen about contributing factors to the mid-single digit craft volume growth in our all-outlet data set the 4 weeks to 9/5. Was Labor Day timing and comparatives a huge factor? Not really, said Danelle Kosmal. “The misalignment in timing for Labor Day year ago comparisons are a contributor, but a very small contributor to the slowness of craft growth for the latest 4 weeks,” she shared.
“We took a look across channels, and it isn’t a specific channel that is driving that slowness,” she said. “The largest contributor to the slowness of growth is primarily due to softness in large craft brands — particularly seasonals and variety packs. About 20 brand extensions are driving 75% of the trend declines in Craft Beer. About half of those brand extensions are seasonals or assorted packs.”
As per our notes in previous story, she cautioned that this definition of craft is not the BA definition, “but rather a broader view that includes Craft and Domestic Specialty brands owned by brewers of all sizes — large and small.”
DEEP ELLUM USING CROWDFUNDING TO SUE STATE OF TEXAS
Deep Ellum Brewing Company is leading the charge in a fight against Texas, per Big Beer in D. The Dallas-based brewer plans to sue the state and “abolish unfair laws” with $100,000 they hope to raise from “Operation Six-Pack to Go,” an Indiegogo crowdfunding campaign.
The Texas legislation that has Deep Ellum up in arms surrounds selling beer to-go at their facility. As it stands, patrons visiting a Texas microbrewery are not allowed to purchase products for off-premise consumption, most notably 6-packs.
“Texas allows every other alcoholic beverage manufacturer — wineries, distilleries, and even brewpubs to sell their products directly to the end consumer for off-premise consumption,” said John Reardon, founder of Deep Ellum Brewing Co. “Microbreweries cannot, and that’s not right. The alcoholic beverage laws in Texas have served special interests, protecting private, rather than public welfare, and it’s time for a change.”
John believes “legal action is the only way to bring about fairness.” His company is resorting to crowdfunding because they feel “this is a consumer interest lawsuit.” Says John: “crowdfunding sends the right message because it comes from the people.”
Deep Ellum “has already retained two law firms and several expert witnesses, including the former General Counsel for TABC.” The case is being heard in the United States District Court for the Western District of Texas Austin Division.
ONE RETAILER WON’T BACK DOWN TO TEXAS CROWLER LAW
If you’ve been keeping up with CBD you know that crowlers are now outlawed at the retail level in Texas. Essentially, the Texas Alcohol Beverage Commission views canning as a “manufacturing process” and requires the company doing the canning to be the producer of the liquid, per state manufacturing law. One retailer, however, has said to hell with it and will continue to offer crowlers anyway.
Mike McKim owner of Cuvée Coffee Bar in Austin told the Houston Press bluntly: “I do not agree with the TABC’s interpretation of the law. Therefore, I refuse to stop selling crowlers.”
The TABC told Mike they have “two options.” They can wait it out until the next legislative session and try to amend the law or Mike “can just say ‘I disagree with their interpretation.'” He noted that there is currently no definition on what constitutes a crowler “so all they’re doing is taking state and federal law and interpreting it.” Mike finds it “nonsensical, that you can serve a growler but you can’t serve a crowler.”
Mike believes his renunciation of the law will likely result in fines starting at $300 a day, and the matter will probably head to court soon after as he has no intention of paying these fines. For Mike, it is “a necessary step in getting the law changed. … The only way we can have a meeting with [the TABC] and go to court is if they come back and issue a citation.”
As of now, Cuvée Coffee Bar is the only retailer in the state taking this approach. Mike is optimistic that a court will rule in his favor and the bar’s fines will be dismissed.
It will be a hefty blow to Mike’s business if the court upholds the TABC’s interpretation. Mike estimates that Cuvée invested between $4,000 and $5,000 in crowler equipment and noted that they’ve been selling 50 crowlers a week now – exceeding traditional growler fills.
Until tomorrow, Jenn
“When you are eight years old, nothing is any of your business.”
– Lenny Bruce
———- Sell Day Calendar ———-
Today’s Sell Day: 13
Sell days this month: 22
Sell days this month last year: 22
This month ends on a: Wed.
This month last year ended on a: Tues.
YTD sell days Over/Under: +1
—-
(c) 2015 BeerNet Communications, Inc. – All rights reserved. Please, no forwarding or copying. Individual subscriptions $400/year. Corporate rates available.
Editor: Jenn Litz-Kirk – jenn@beernet.com
Associate Beer Editor: Jordan Driggers – jordan@beernet.com
Publisher: Harry Schuhmacher – hs@beernet.com
Customer Service: Kimberly Nelson – kim@beernet.com
Check craftbusinessdaily.com for back issues or to subscribe or renew.
Phone: 210-805-8006. Email: Kim@beernet.com
Make yourself heard, your opinions count. Anonymous feedback and tipster form: http://www.craftbusinessdaily.com/hotline.php
We Have a New Mailing Address:
909 NE Loop 410, Suite 720
San Antonio, TX 78209
